2024 Success: United Airlines Soars with Strong Earnings
United Airlines has wrapped up 2024 with impressive financial results, surpassing expectations in the fourth quarter. The airline’s strategic investments and focus on premium services have driven strong demand across all segments, solidifying its position as a leading global airline. With record-breaking passenger numbers and steady growth in revenue, United Airlines is optimistic about the future as it enters 2025.
Strong Demand Across All Segments
United Airlines attributes its success to the growing demand for its services. In Q4 2024, the airline recorded a significant rise in revenue across different categories:
- Premium revenue increased by 10% year-on-year (YoY)
- Corporate travel revenue rose by 7% YoY
- Basic economy revenue saw a strong 20% YoY growth
- Loyalty program revenue climbed 12%
- Cargo revenue surged by 30%
These positive trends reflect customers’ growing preference for United Airlines, thanks to its investments in service quality and brand value.
Financial Performance in Q4 and Full Year 2024
United Airlines reported robust financial growth in both Q4 and the full year:
- Q4 2024 Operating Revenue: $14.7 billion (7.8% increase)
- Q4 Net Income: $1 billion
- Q4 Earnings Per Share (EPS): $2.95
- Full Year 2024 Net Income: $3.1 billion
- Adjusted Net Income: $3.5 billion
- Full Year Operating Revenue: $57 billion (6.2% increase YoY)
Comparison with Delta Air Lines
Among major U.S. airlines, only Delta Air Lines has reported its financial results for 2024. Delta’s total revenue also stood at $57 billion, while its net income (adjusted) was higher at $3.9 billion compared to United’s $3.5 billion.
United Airlines Achieves a Record-Breaking Year
In 2024, United Airlines operated its largest-ever flight schedule and carried a record 173.6 million passengers, a 5.3% increase from the previous year. The airline maintained an average of 4,340 daily flights, adding 145 more mainline flights per day compared to 2023.
Key operational highlights include:
- Total fleet size: 1,406 aircraft
- Capacity growth (ASM): 6.8% YoY increase
- Demand growth (RPM): 5.8% YoY increase
- Load factor: 83.1%, slightly lower than 83.9% in 2023
Cost and Fuel Price Trends
Despite rising costs, United Airlines benefited from lower fuel prices:
- Total costs: 5% increase YoY
- Cost per available seat mile (CASM): 16.7¢ (down 1.7% YoY)
- CASM excluding fuel (CASM-ex): 12.58¢ (up 4.6% YoY)
- Average fuel price per gallon: $2.65, 12% lower than $3.01 in 2023
Operational Excellence and On-Time Performance
United Airlines continued to improve its operational efficiency in 2024. The airline ranked second among the top eight U.S. airlines for on-time departures and arrivals, with record-breaking punctuality in February, September, and October. Delta Air Lines held the top spot in on-time performance.
Positive Outlook for 2025
Looking ahead, United Airlines expects strong demand in Q1 2025, with domestic and international revenue per available seat mile (RASM) projected to grow. The airline remains confident in its premium-focused strategy, which CEO Scott Kirby believes has permanently changed the industry.
Key 2025 Financial Projections
- Adjusted EPS (Q1 2025): Between $0.75 and $1.25
- Adjusted EPS (Full Year 2025): Between $11.50 and $13.50
- Capital expenditures (CapEx): Expected to be under $7 billion
Kirby emphasized that United Airlines’ growth strategy positions it as the leading global airline, with demand trends continuing to accelerate. He remains optimistic about achieving double-digit pre-tax margins in 2025.
United Airlines ended 2024 on a high note, with strong financial performance, record passenger numbers, and steady revenue growth. Its focus on premium services, cost management, and operational efficiency has helped it stand out in a competitive airline industry. As the company moves into 2025, it remains confident in its ability to sustain demand and achieve further profitability, solidifying its position as a leader in the global aviation sector.
